# Dairy prices under pressure due to increased U.S. milk production

> US milk output keeps rising, and USDA data show February butter, cheese and nonfat dry milk production was the highest ever for that month. Foodservice demand is recovering as restaurants reopen with more seating, easing some of the pressure. USDA also plans to launch a Dairy Donation Program that reimburses processors for donating surplus milk.

- Date: 2021-04-16 · published 2021-04-16T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/47608-dairy-prices-under-pressure-due-to-increased-u-s-milk-production
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Heavy milk supply relative to demand keeps dairy product and Class III milk prices under pressure. Recovering foodservice demand limits the downside, so the price effect is modest.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2016-11-02 | [Increased milk production pressures prices lower](https://feedsoft.ai/events/73986-increased-milk-production-pressures-prices-lower.md) | +13.4% | +14.8% |
| MILK | 2026-06-29 | [Record milk production keeps pressure on dairy prices](https://feedsoft.ai/events/18977-record-milk-production-keeps-pressure-on-dairy-prices.md) | -2.7% | -1.6% |
| MILK | 2026-01-24 | [USDA increases 2026 milk production forecast - Dairy Star](https://feedsoft.ai/events/21063-usda-increases-2026-milk-production-forecast-dairy-star.md) | -0.5% | +2.2% |
| MILK | 2025-09-23 | [Dairy Production, Demand Expected To Increase](https://feedsoft.ai/events/22859-dairy-production-demand-expected-to-increase.md) | -0.4% | -3.7% |
| MILK | 2020-08-12 | [Increasing milk production expected to keep dairy prices low - Brownfield Ag News](https://feedsoft.ai/events/51624-increasing-milk-production-expected-to-keep-dairy-prices-low-brownfield-ag-news.md) | +2.3% | -14.3% |

## Sources

- weau.com: https://www.weau.com/2021/04/16/dairy-prices-under-pressure-due-to-increased-us-milk-production/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.